anders Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May.

	Standard Cost per Unit						Actual Cost per Unit
Direct materials:
Standard: 1.80 feet at $3.00 per foot	$	5.40
Actual: 1.75 feet at $3.20 per foot							$	5.60
Direct labour:
Standard: 0.90 hours at $22.00 per hour		19.80
Actual: 0.95 hours at $21.40 per hour								20.33
Variable overhead:
Standard: 0.90 hours at $7.00 per hour		6.30
Actual: 0.95 hours at $6.40 per hour								6.08
Total cost per unit	$	31.50					$	32.01
Excess of actual cost over standard cost per unit				$	0.51

The production superintendent was pleased when he saw this report and commented: This $0.51 excess cost is well within the 2% limit management has set for acceptable variances. Its obvious that theres not much to worry about with this product.

Actual production for the month was 12,280 units. Variable overhead cost is assigned to products on the basis of direct labour-hours. There were no beginning or ending inventories of materials.

Required:

1. Compute the following variances for May:

a. Materials quantity and price variances. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance.)

b. Labour efficiency and rate variances. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance.)

c. Variable overhead efficiency and rate variances. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance.)

2. How much of the $0.51 excess unit cost is traceable to each of the variances computed in (1) above. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round your answers to 2 decimal places.)

3. How much of the $0.51 excess unit cost is traceable to apparent inefficient use of labour time? (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculations. Round your final answers to 2 decimal places.)